Office Depot shares climbed +9% Wednesday, after the company reported better-than-expected fourth quarter earnings.
The office supply retailing company reported adjusted earnings of 9 cents a share, exceeding analysts' expectations of 8 cents.
Revenue for the quarter came in at $2.67 billion, higher than $2.58 billion of the year-ago quarter. However, comparable same-store sales (for stores open at least a year) fell -5%. On the other hand, revenue from the firm’s services business surged +34%, with the growth largely driven by the divisional output of CompuCom (the IT firm that Office Depot acquired in 2017).
For the full-year 2018, Office Depot sales of $11 billion were +8% higher than 2017’s $10.24 billion. Net income of $99 million, however, was lower compared to the preceding year’s $146 million.
For the full year 2019, the company expects to generate sales of about $11.1 billion.
The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an uptrend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where ODP advanced for three days, in of 287 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Momentum Indicator moved below the 0 level on April 04, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on ODP as a result. In of 96 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for ODP turned negative on April 05, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 47 similar instances when the indicator turned negative. In of the 47 cases the stock turned lower in the days that followed. This puts the odds of success at .
ODP moved below its 50-day moving average on April 02, 2024 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for ODP crossed bearishly below the 50-day moving average on March 14, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 17 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ODP declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 77, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. ODP’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating slightly better than average sales and a considerably profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.745) is normal, around the industry mean (12.709). P/E Ratio (14.991) is within average values for comparable stocks, (35.640). Projected Growth (PEG Ratio) (0.661) is also within normal values, averaging (2.536). ODP has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.033). P/S Ratio (0.268) is also within normal values, averaging (87.325).
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a provider of office products, services and solutions
Industry SpecialtyStores